It is no question that several parents and guardians agree that it is necessary for their children to be equipped with the best possible education. Hence, from their early years up until their early or mid-twenties, most children go through the progressive educational system. On the other side of things, as the child continues to learn, parents or guardians regularly shell out funds to pay for their children’s education.
These expenses do not end until the child finishes the final year or unless the child drops out. While educational expenses can be bearable in the early stages, they steadily increase over time. Not to mention, inflation does not cease as time goes by. Hence, it is expected that parents and guardians will have to bear higher financial burdens as the years pass.
That being said, several parents agree that it is necessary to prepare for the child’s education, especially higher education. In such a case, higher education planning is important and helpful.
What Should Your Child’s Higher Education Fund Cover?
In order to come up with a comprehensive higher education plan, parents and guardians should take into account the different expenses that they should prepare for. Here are some of the major education-related costs that parents and guardians have to regularly pay.
Tuition Fees
When education funds enter the picture, the first thing that enters a person’s mind is probably the tuition fee. In most cases, tuition takes up the largest chunk of one’s education fund.
The tuition costs can vary depending on factors such as the country, the educational institution, the course, and other details. On a year-to-year basis, tuition fees keep increasing. This makes it difficult for parents to keep up. Thus, preparing for this will clearly ease the load for parents and guardians.
Daily expenses
It is not uncommon for university students to study in a different city, state, or country. In such a case, their daily expenses are another thing to consider. Costs such as monthly rental, food and grocery bills, utility bills, and other necessities automatically come into the picture.
While there is no guarantee that the child will be studying elsewhere, taking these living expenses into account will significantly prepare families for such a case.
Travel and transportation costs
Whether the child studies at a local school or in a different city or country, transportation costs need to be taken into account. If the child attends school in an entirely different place, parents need to consider the flight costs and even their transportation from place to place.
Though transportation costs may seem to be minimal, they actually take up a significant chunk. As these expenses compound and accumulate, they actually lead to a pretty significant sum. Thus, they should not be taken for granted when it comes to higher education planning.
Miscellaneous costs
School projects, class contributions, study materials, and even outings all incur expenses. Like transportation, this may seem minimal, but it is actually significant. Hence, allocating funds for miscellaneous costs is of equal importance.
All of these costs matter and should be carefully planned and projected.
How Much Should You Save Up For Your Child’s Higher Education?
The exact costs may vary from city to city and country to country. However, according to a report by The College Board, the costs of completing a four-year course in the state this school year (2022–2023) reach $10,950. The number more than doubles when studies are pursued outside of the state—with a whopping projected expense of $28,240. These numbers are incredibly high and hard to source without any prior preparation.
Such numbers give a clear idea of how much families need to allocate. However, the exact target amount may depend on the parents or guardians. They can decide how much they want to save, how much they can allocate for this plan on a monthly basis, and when they want to reach the target. All of the previously mentioned costs should be taken into account when coming up with an exact fund target and strategy.
How To Get Started With Higher Education Planning
That being said, higher education planning is clearly important so that parents and guardians can reach the higher education finance goal. To get started with higher education planning, here are the things to do:
Consider the target school and amount to save up for.
Though the actual school may vary when the child reaches this stage, there is no harm in choosing a particular school. This way, parents and guardians can have a concrete gauge of the projected expenses and, consequently, the target amount.
Set a savings time frame and monthly allocation.
In order for a goal to be achievable, it must be time-bound. Hence, parents and guardians should assess how much time they have left to reach this goal. From there, they can calculate how much they need to save up on a monthly basis. This can also be adjusted depending on the family’s capacity and current obligations.
Stick to the plan.
The higher education plan will be deemed useless in the end if it is not implemented. Like other savings and investment endeavors, executing this plan requires diligence and discipline. Considering the other financial obligations that parents and guardians need to handle, sticking to long-term financial plans like this can be difficult. However, in order to stay on track, parents and guardians must consistently remind themselves of why they are doing this in the first place.
Get Professional Guidance
Planning out a child’s higher education can be quite overwhelming and tedious for parents and guardians. The good thing is that there are professional service providers such as Omega Management Korea that are there to make things easier.
Omega Management can help families come up with a strategy that leads to their success. With their help, parents can effectively prepare for this huge expense and enable their children to reach their potential.
Contact Omega Management Korea to get started with higher education planning.
